FOR IMMEDIATE RELEASE
Contact: Vicki Christner – CUNA Communications, 202-508-6754, email@example.com
Washington (May 21, 2015) – Representatives Randy Neugebauer (R-TX) and William Lacey Clay (D-MO) introduced CUNA-backed legislation to address credit union parity in Federal Home Loan Bank (FHLB) membership rules. H.R. 2473 would amend the Federal Home Loan Bank Act to ensure the eligibility requirements for similarly sized credit unions and banks are the same by including credit unions in the act's definition of "community financial institution."
Currently, a Federal Housing Finance Authority (FHFA) statute exempts community banks under $1 billion in assets from meeting a requirement of holding 10% of assets in residential mortgages on an ongoing basis to maintain FHLB membership. However, credit unions must meet that requirement. The FHFA has oversight over the FHLB system.
“We thank Reps. Neugebauer and Clay for their leadership on this important issue because FHLBs are a reliable, low-cost source of liquidity for financial institutions,” said Sam Whitfield, CUNA's deputy chief advocacy officer. “During the latest financial crisis, the FHLBs served as a key liquidity source for credit unions – ensuring that their service to their members was uninterrupted. It is just sound policy that credit unions be treated equally to similarly sized community banks."
Neugebauer and Clay are the chair and ranking member on the House Financial Services subcommittee on financial institutions and consumer credit.
With its network of affiliated state credit union leagues, Credit Union National Association (CUNA) serves America's credit unions, which are owned by more than 100 million consumer members. Credit unions are not-for-profit cooperatives providing affordable financial services to people from all walks of life. For more information about CUNA, visit www.cuna.org or follow @CUNA on Twitter. For more information about credit unions, visitwww.aSmarterChoice.org and follow @asmarterchoice on Twitter. Visit the CUNA Press Room for a full listing of media mentions, press releases and resources to stay informed on current events within the credit union industry.